21st Century Payphones

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I was amused by the irony, but also found it sad that the government had yet to convert those payphones into something more valuable than desks next to a restroom. Apparently, someone more entrepreneurial than me had a similar experience, because the company City 24/7 has a use for those old payphones.

In New York City, the company is starting a pilot program where they are going to convert 250 obsolete payphone booths into interactive kiosks. Part digital sign, part giant tablet, the new “phones” will feature neighborhood specific information including weather, information about nearby restaurants and shops, companies hiring in the vicinity, public service announcements, and anything else you can imagine serving up.

In the future, they could also be WiFi hotspots, Skype phones, and allow people to register complaints directly to the city. Here’s a video showing the proposed kiosks to give you an idea of what they might offer:

This is definitely a great idea for the city of New York. It will cost them nothing to convert the phones. If the program is successful, they’ll get a cut of the ad revenue and possibly have a solution for getting rid of over 12,000 eye sores around the city. Let’s face it, at this point those booths are just targets for graffiti, and anything that can aid the local economy more than an old phone booth is great.

You’ve also got to like City 24/7’s business plan. They’re essentially using the business plan railroads used in the 19th century. For the cost of building new infrastructure, they’re being given some of the most prime advertising real estate in New York City. One has to wonder why the various telephone companies running these booths in the past allowed such valuable real estate to fester to the point that they’ve lost it.

City 24/7 very cleverly found a way to carve a free space into New York’s crowded and expensive advertising landscape. Retail and marketing CIOs across the country should take note, because cities looking to rebuild crumbling infrastructure would likely be willing to give access to similar high traffic areas, including public restrooms and public transportation stops.

But there are some interesting concerns. For one, with the ubiquity of mobile devices, this is an idea that may be just a step behind. It is possible people will walk right by the kiosks with the restaurant information on them because they’re too busy checking OpenTable on their smartphones. Can the kiosks make enough revenue off of people without smartphones?

Another issue is protecting the kiosks from vandalism. No one can walk in a major city for more than a few minutes without seeing a vandalized payphone. The initial cost of the transition is probably pretty reasonable, but constantly replacing and protecting the screens may become a problem.

Still, governments partnering with retailers and marketers to rebuild the technology infrastructure is a winning concept. The technology is relatively simple, and from the point of view of the CIO, easily maintained (if the physical location is safe). The reach is significant, and better than digital signage and other similar options, because it provides a service for the viewer rather than simply demanding they look. I suspect it won’t be long until we see these in high traffic areas all around the US. What do you think?